Malibu Boats (NASDAQ:MBUU) versus Simulated Environment Concepts (OTCMKTS:SMEV) Financial Contrast

Malibu Boats (NASDAQ:MBUU) and Simulated Environment Concepts (OTCMKTS:SMEV) are both small-cap consumer discretionary companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, risk, earnings, institutional ownership, analyst recommendations and valuation.

Institutional and Insider Ownership

91.3% of Malibu Boats shares are owned by institutional investors. Comparatively, 0.2% of Simulated Environment Concepts shares are owned by institutional investors. 1.2% of Malibu Boats shares are owned by company insiders. Comparatively, 62.6% of Simulated Environment Concepts shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and recommmendations for Malibu Boats and Simulated Environment Concepts, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Malibu Boats	2	6	1	0	1.89
Simulated Environment Concepts	0	0	0	0	0.00

Malibu Boats presently has a consensus price target of $36.00, suggesting a potential upside of 4.29%. Given Malibu Boats’ stronger consensus rating and higher possible upside, equities analysts plainly believe Malibu Boats is more favorable than Simulated Environment Concepts.

Risk & Volatility

Malibu Boats has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500. Comparatively, Simulated Environment Concepts has a beta of 0.89, meaning that its share price is 11% less volatile than the S&P 500.

Valuation & Earnings

This table compares Malibu Boats and Simulated Environment Concepts”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Malibu Boats	$807.56 million	0.82	$14.88 million	$0.77	44.83
Simulated Environment Concepts	N/A	N/A	N/A	N/A	N/A

Malibu Boats has higher revenue and earnings than Simulated Environment Concepts.

Profitability

This table compares Malibu Boats and Simulated Environment Concepts’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Malibu Boats	1.84%	4.93%	3.42%
Simulated Environment Concepts	N/A	N/A	N/A

Summary

Malibu Boats beats Simulated Environment Concepts on 9 of the 10 factors compared between the two stocks.

About Malibu Boats

Malibu Boats, Inc. designs, engineers, manufactures, markets, and sells a range of recreational powerboats. It operates through three segments: Malibu, Saltwater Fishing, and Cobalt. The company provides performance sport boats, and sterndrive and outboard boats under the Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, and Cobalt brands. Its products are used for a range of recreational boating activities, including water sports, such as water skiing, wakeboarding, and wake surfing; and general recreational boating and fishing. The company sells its products through independent dealers in North America, Europe, Asia, the Middle East, South America, South Africa, and Australia/New Zealand. Malibu Boats, Inc. was founded in 1982 and is based in Loudon, Tennessee.

About Simulated Environment Concepts

Simulated Environment Concepts, Inc. engages in the development and manufacture of medical, health, and wellness equipments in the United States and internationally. Its products include SpaCapsule, a robotic massage therapy system used for medical rehabilitation, relaxation, weight loss, slimming, cellulite management, and general wellness; and PTjetCapsule. The company also offers components, parts, accessories, and peripheral massage and health related items. Its products are used in various environments, such as corporate employee lounges, relaxation centers, gyms and health clubs, doctor's offices, hotels, tanning and beauty salons/spas, luxury accommodations, gulf clubs, ski lounges, shopping centers and malls, airports, cruise ships, luxury yachts, and homes. Simulated Environment Concepts, Inc. was founded in 1993 and is based in Miami, Florida.